Pricing is the hairiest of beasts for my clients and of course for me since we’re solopreneurs. Because I only come to the sales conversation with a prospect after first establishing the ‘know-like-trust’ through public speaking or having just gone through a complimentary session, I almost never get questioned on my price. A person is either willing to invest to grow their business or they’re not. It’s just that simple. It’s about their belief in the value of what you offer. Here are some other tips to help you get over the pricing hurdle:
Establish the value of your offering before you discuss price
The sooner price is brought up in the sales interaction, the more of a focal point it will become and the more difficult it will be to demonstrate your value. If someone insists on an immediate price—and it does happen from time to time—I never get the sale.
Focus on the outcome or results
Whenever possible, translate the benefits of your product/service into actual dollars.
This approach is extremely effective in reducing price resistance. For example, if a company will save thousands of dollars in operating costs after implementing your solution then a purchase price of several hundred dollars seems worthwhile.
Don’t drop your price
It amazes me how often sales people quickly drop their price at the first sign of price resistance. If price was the only reason people bought goods and services, high-end boutiques and companies that sell premium products would not exist. However, if you fail to demonstrate the value of your product or service, price will become the primary area of focus simply by default.
Remember that you can price yourself 10x as high as your nearest competitor as long as you are 10x as effective in communicating your value and can deliver 10x as much value to your clients. Think about why some coaches are barely scraping by while Tony Robbins charges insane amounts of money to do the same thing. It’s because the perception is that he will without a doubt change a life with his coaching. How do you deliver the same message and value in your business?
- Smart Marketing Tips from Get Busy Media: Reasons to Pass on Daily Deals (theepochtimes.com)
- How to get a big customer for your small business (holykaw.alltop.com)
- Businesses raise prices to pass on new costs (smh.com.au)